This meeting, like the June meeting, was shortened to about two hours because Vice Chancellor Clark had to attend the Board meeting that overlapped the Academic Council meeting. The agenda for the meeting was immediately modified to permit Joe Sicotte and Denise Yunker to address the group about considering independent health/dental insurance for OUS that is, to leave PEBB. SB 271 (the higher education efficiency act) permits the OUS to go it alone. The deadline for notifying PEBB that OUS will stay in the PEBB plan in 2001 is December, 1999; so the decision to leave or stay is front-loaded and must be made this fall. Grattan Kerans discussed some of the political implications surrounding the decision:
OUS must opt out of PEBB in either 2001 or 2003 when the legislature is not in session. There must be consensus among the institutions that this is wise. OUS may need to convince the Governor of such a move as he is committed to PEBB despite SB 271. Is it politically wise? The governor may think its all right but this must be determined before a decision is made. OUS also must determine if it is wise to invoke SB 271 in this instance what might be the political downside?
According to Yunker, the issue is that benefits for faculty are
seen by OUS as part of the whole compensation package while PEBB doesnt
subscribe to this philosophy. PEBB is trying to buy the best insurance
for the least money and regards insurance the only aspect it should consider.
Eventually PEBB will demand that all decisions be made without compensation
considerations. The authority to leave PEBB was a lever to get the
benefit package faculty have for the 2000 plan year; it is not clear OUS
can continue to rely on that lever. Sicotte pointed out that SB 271
states the OUS must be able to provide the same services for lower cost
but it is unclear whether that is for the first year out or forever. The
SOU provost, Dr. Hopkins-Powell, stated OUS should make the effort to help
faculty with benefits; salary is already an issue and having to deal with
loss of good benefits complicates salary problems, she stated.
One option for OUS would be to join OHSU (which insures outside of PEBB); OHSU is willing to discuss this option. OHSU reports the experience there has been very positive; the biggest problem initially was reducing the number of plans. Currently, the OHSU plan is very cost effective and acceptable to faculty.
The provosts generally supported leaving PEBB because of the total compensation issue. It was noted that it might be possible to leave classified staff in PEBB, taking only faculty out. There are myriads of legal, funding and governance issues that must be resolved if OUS separates from PEBB.
The idea will be discussed within the chancellor's office. It wasn't clear when or what action might follow.
Vice Chancellor Clark noted there are three new nominees to the State Board: Sean Hempel, a student from OIT, Bill Williams from Bear Creek Corporation, and Leslie Lehman, executive director of the Forest Research Institute. No legislative confirmation committee had been appointed nor had a date been set for confirmation as of September 17th. Until these new members are confirmed, the serving members will continue in their posts.Grattan Kerans briefed the Council on legislative matters. The OUS is starting to plan its approach to the 2001 session. He asserted that OUS will not get another 25% increase and the legislature won't be interested in continuing the old saw of moving the system's institutions toward their peers by fully funding the model. Money from the legislature will be purely based on student loads with some funding for targeted programs and initiatives. Tuition will no longer be frozen; both the Oregon Student Association and the general public expect the thaw.
Two program proposals were sent forward to the Board from WOU: an M.S.
in Social Policy and a B.A./B.S. in Philosophy.
Holly Zanville (OUS staff) reported on a new $4.8 million grant from
the U. S. Department of Education for a Title II Teacher Quality Enhancement
Program. Numerous initiatives will be instituted over the three-year
grant period to bring about systemic changes in policy and implementation
to enhance teacher quality. Many will be carried out by OUS institutions
while some will be handled by other agencies in Oregon.
Ben Rawlins, legal affairs officer for OUS, acquainted provosts with procedures they should use when the Secretary of State's auditors are auditing institutions. I gathered these auditors are looking closely at institutional foundations and the handling of faculty personnel files, among other things. Rawlins noted that currently, there are 5 audits on just one campus. The Secretary of State seems to be giving higher ed. much more attention. This was primarily a heads-up for the provosts.